Federated Hermes Inc. Reduces Stake in Builders FirstSource, Inc. (NYSE:BLDR)

Key Points

• Federated Hermes Inc. reduced its stake in Builders FirstSource by 28.2%, selling 27,162 shares and owning approximately 0.06% of the company worth $8.65 million as of the last reporting period.
• Builders FirstSource recently reported a net margin of 4.74% and a return on equity of 24.61%, with quarterly earnings of $2.38 per share, exceeding estimates by $0.03.
• The board approved a stock buyback plan allowing the company to repurchase up to $500 million in shares, indicating management's belief that the stock is undervalued.

Federated Hermes Inc. lessened its position in Builders FirstSource, Inc. (NYSE:BLDR - Free Report) by 28.2% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 69,235 shares of the company's stock after selling 27,162 shares during the quarter. Federated Hermes Inc. owned approximately 0.06% of Builders FirstSource worth $8,650,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Cambridge Investment Research Advisors Inc. raised its holdings in shares of Builders FirstSource by 18.5% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 20,010 shares of the company's stock valued at $2,500,000 after buying an additional 3,131 shares during the period. Stephens Inc. AR raised its holdings in shares of Builders FirstSource by 42.5% in the 1st quarter. Stephens Inc. AR now owns 2,942 shares of the company's stock valued at $368,000 after buying an additional 877 shares during the period. Oppenheimer Asset Management Inc. raised its holdings in shares of Builders FirstSource by 41.4% in the 1st quarter. Oppenheimer Asset Management Inc. now owns 7,566 shares of the company's stock valued at $945,000 after buying an additional 2,216 shares during the period. Altus Wealth Group LLC raised its holdings in shares of Builders FirstSource by 11.2% in the 1st quarter. Altus Wealth Group LLC now owns 45,021 shares of the company's stock valued at $5,625,000 after buying an additional 4,549 shares during the period. Finally, Sowell Financial Services LLC purchased a new stake in shares of Builders FirstSource in the 1st quarter valued at $1,012,000. Hedge funds and other institutional investors own 95.53% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on BLDR shares. Stifel Nicolaus boosted their price objective on Builders FirstSource from $118.00 to $128.00 and gave the company a "hold" rating in a report on Friday. Stephens cut their price target on Builders FirstSource from $145.00 to $140.00 and set an "overweight" rating on the stock in a report on Friday, May 2nd. UBS Group cut their price target on Builders FirstSource from $180.00 to $163.00 and set a "buy" rating on the stock in a report on Friday, May 2nd. Zelman & Associates restated an "underperform" rating on shares of Builders FirstSource in a report on Friday, July 18th. Finally, Baird R W downgraded Builders FirstSource from a "strong-buy" rating to a "hold" rating in a report on Friday. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating and twelve have issued a buy rating to the stock. Based on data from MarketBeat, Builders FirstSource has a consensus rating of "Moderate Buy" and a consensus target price of $156.16.

Insider Activity at Builders FirstSource

In related news, Director Paul S. Levy acquired 283,517 shares of Builders FirstSource stock in a transaction on Thursday, May 8th. The stock was purchased at an average cost of $111.21 per share, with a total value of $31,529,925.57. Following the purchase, the director directly owned 1,672,687 shares in the company, valued at approximately $186,019,521.27. The trade was a 20.41% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Dirkson R. Charles acquired 5,000 shares of Builders FirstSource stock in a transaction on Tuesday, May 27th. The shares were bought at an average cost of $109.67 per share, with a total value of $548,350.00. Following the completion of the purchase, the director owned 5,000 shares in the company, valued at $548,350. The trade was a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last ninety days, insiders have acquired 505,000 shares of company stock valued at $56,032,120. 1.80% of the stock is owned by company insiders.

Builders FirstSource Stock Performance

Shares of NYSE BLDR traded down $1.94 during trading hours on Monday, reaching $128.24. The stock had a trading volume of 2,662,584 shares, compared to its average volume of 2,178,993. The firm has a market cap of $14.18 billion, a price-to-earnings ratio of 14.04, a PEG ratio of 11.90 and a beta of 1.68. The company has a current ratio of 1.79, a quick ratio of 1.08 and a debt-to-equity ratio of 1.12. Builders FirstSource, Inc. has a fifty-two week low of $102.60 and a fifty-two week high of $203.14. The firm has a 50-day moving average of $120.51 and a 200-day moving average of $128.65.

Builders FirstSource (NYSE:BLDR - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported $2.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.35 by $0.03. The firm had revenue of $4.23 billion during the quarter, compared to analysts' expectations of $4.29 billion. Builders FirstSource had a return on equity of 24.61% and a net margin of 4.74%. The business's revenue was down 5.0% on a year-over-year basis. During the same period in the prior year, the firm earned $3.50 EPS. Equities research analysts predict that Builders FirstSource, Inc. will post 11.59 earnings per share for the current year.

Builders FirstSource declared that its Board of Directors has initiated a share repurchase program on Thursday, May 1st that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to repurchase up to 3.9% of its shares through open market purchases. Shares buyback programs are often an indication that the company's management believes its stock is undervalued.

About Builders FirstSource

Builders FirstSource, Inc, together with its subsidiaries, manufactures and supplies building materials, manufactured components, and construction services to professional homebuilders, sub-contractors, remodelers, and consumers in the United States. It offers lumber and lumber sheet goods comprising dimensional lumber, plywood, and oriented strand board products that are used in on-site house framing; manufactured products, such as wood floor and roof trusses, floor trusses, wall panels, stairs, and engineered wood products; and windows, and interior and exterior door units, as well as interior trims and custom products comprising intricate mouldings, stair parts, and columns under the Synboard brand name.